MUMBAI: Reserve Bank of India governor Shaktikanta Das has stated banks are anticipated to give you board-approved restructuring plans for Covid-affected companies by the tip of the month and so they needn’t wait for the Ok V Kamath committee‘s report.
According to Das, the Kamath committee appointed by the RBI will come out with a report by September 6 and can solely suggest monetary parameters that banks should use for restructuring. “These will be only for business loans and not personal loans,” stated Das in an interview to information channel CNBC Awaaz.
Some of the banks have already taken approval from their board. “We have already got our board approval for restructuring personal loans. For MSME and retail loans, we do not need any guidelines as there is already a scheme in place. We will put the standard operating procedures in place by next week and communicate to our branches so that they can start the process,” stated Union Bank of India chairman Rajkiran Rai.
Das stated, “As part of Covid resolution, banks can give moratorium on loan. It will depend on what the bank decides. Most banks will come out with a board-approved policy before the end of this month. They need not wait for the Kamath committee report.” The governor sought to allay fears of hardening rates of interest that had gained floor following the discharge of the minutes of the August 6 financial coverage committee (MPC) assembly.
The governor additionally assured monetary markets that the central financial institution would take all measures to make sure that the federal government borrowing takes place with out disruption. He additionally stated that the RBI was watching the monetary markets and would take no matter steps which are required and had a number of devices at its disposal.
On resuming forecasts on macro numbers for the present monetary yr, Das stated that the views of the brand new MPC members (who will be part of earlier than the October coverage) could have to be considered. He identified that at current there was a number of uncertainty and any quantity that the RBI provides could be probably to change. But if there was some readability with respect to the virus, the RBI might resume forecasts.